Yelp (YELP) investor relations material

Strategic vision and platform evolution

• Emphasis on a product-led, services-focused approach post-pandemic, driving significant revenue growth and innovation, especially in services.

• AI is seen as a transformative platform shift, with the rollout of Yelp Assistant to enhance consumer experience and expand across all categories.

• Plans to reinvent the consumer experience by leveraging AI to make interactions more intuitive and personalized, including booking and project management.

• Continued investment in AI-powered products like answering services (Yelp Receptionist, Yelp Host) to address business owner pain points and improve lead capture.

• Focus on expanding data licensing opportunities, with over $10 million in ARR from AI search partners and ongoing momentum in this area.

Market environment and competitive landscape

• Restaurant segment faces ongoing macro headwinds from rising costs and consumer price sensitivity, while services segment shows 8% revenue growth despite seasonal slowdowns.

• Competitive landscape remains stable, with vertical players and Google as key competitors; AI search entrants present new partnership opportunities.

• Traffic sources remain steady, with successful direct app engagement and ongoing experimentation in paid traffic acquisition.

• No significant impact observed from Google AI overviews on traffic, as these are mostly applied to non-commercial queries.

Product innovation and AI integration

• Yelp Assistant is expanding to unregistered users and across more categories, aiming to drive higher engagement and project volume for business owners.

• AI-powered answering services help small businesses capture more leads and improve ROI, offering new value propositions for service providers.

• Multi-location services represent a large, underpenetrated opportunity, with investments in APIs, CRM integration, and conversion tracking to support sophisticated advertisers.

• Internal AI tools like ChatBench and LLMs are boosting productivity in engineering, sales, and customer success, though transformation is still in early stages.